Medicaid Funding Suspended for Two More Nursing Homes in NJ, Owners Linked To Alleged Fraud

Two more nursing homes in New Jersey have their Medicaid funding suspended following allegations of massive fraud by the owners related to their New York facilities.

Deptford Center for Rehabilitation and Healthcare, and Hammonton Center for Rehabilitation and Healthcare will lose their Medicaid funding on May 24, according to the Office of the State Comptroller and reporting from NJ.com. There are currently 200 and 156 residents at Deptford and Hammonton, respectively.

The facilities would need to appoint a monitor or take similar action to transfer control of Medicaid funds away from the current owners: Kenneth Rozenberg, Beth Rozenberg, and Daryl Hagler.

Kenneth Rosenberg is co-owner of Centers Health Care, and Hagler is a co-owner of properties with Rozenberg.

“We will continue to fight the New York Attorney General’s spurious claims and will respond to the New Jersey copycat claims in due course,” Jeff Jacomowitz, a spokesperson for Centers, told NJ.com. Beyond that, Centers would not comment on pending litigation.

New York Attorney General Letitia James accused the owners in a lawsuit of siphoning $83 million from nursing homes funded by Medicare and Medicaid to enrich themselves, their relatives and associates.

Evidence of repeated and persistent fraud was so credible that a New York State Supreme Court judge last July appointed a financial monitor and health monitor to assess and manage operations.

“The core of Medicaid’s mission is to deliver quality care,” said New Jersey Department of Human Services Communications Director Tom Hester. “There should be no question about health and safety for our long-term care residents, or about the proper use of government program funds. The goal is, and will always be, quality care, including through holding operators to the highest standards.”

The news comes on the heels of Gail and Ezra Bogner, also nursing home owners in New Jersey, being suspended from the Medicaid program last week. The Bogners owned the now defunct Princeton Care Center and Woodland Behavioral and Nursing Center.

Yet another facility in the state, Limecrest Subacute and Rehabilitation Center, was at risk of losing its Medicaid funding unless a buyer stepped in – owners informed the state they planned to sign a contract for sale on Feb. 1, according to the NJ.com report.

But, the Centers for Medicare & Medicaid Services (CMS) imposed a $643,860 fine after citing health and safety violations leading to the death of seven residents from Covid-19 and the infection of 66 residents and employees.

One Limecrest resident was waiting several days for antiviral medication prescribed to treat Covid as well. The state health department suspended admissions to Limecrest in November.